Homework Answers
Ans is E
An economy is capital intensive when it has more capital relative to labor. However an economy in intensive in factor of production can also be found out by relative prices of fop. A factor having lower relative price is considered to have intensive in endowment.
But to find comparative advantage we need opportunity cost of good for both country which cannot be found out from above conditions.
Thus there is not enough info. Given to answer the question.
Add Answer to:
Assume that the two factors of production in Gambinia are labor and capital. Gambinia produces two...
1-Home produces 2 goods X and Y . Home country has two factors of production, Labor...
1-Home produces 2 goods X and Y . Home country has two factors of production, Labor and Capital. All consumers at Home have preferences over two goods that can be represented by the utility function U(X,) =XY . The factor requirements per unit of output of the two goods are also fixed and they are shown in the following table: Good X Good Y Labour 1/3 2/3 Capital 2/3 1/3 Home country has 360 units of Labour and 600 units...
Assume two nations, two products, and two factors of production labor and capital . compare the...
Assume two nations, two products, and two factors of production labor and capital . compare the situation of FDI in the Short run and the long run regarding wages, returns to capital industry output and prices of goods
Heckscher-Ohlin model Country A produces cellphone (C) and food (F) with capital and labor. Both sectors...
Heckscher-Ohlin model Country A produces cellphone (C) and food (F) with capital and labor. Both sectors are perfect competitive. Capital (K) and labor (L) are not substitutable with each other. Thus, unit capital requirement and unit labor requirement are fixed. ??? = 3, ??? = 1, ??? = 2, ??? = 4, where ??? is the number of units of K-capital required to produce and unit of C-cellphone. a. Which sector is relatively capital intensive? Which sector is relatively labor...
Production of TVs are relatively capital intensive, and tennis racquets are relatively labor intensive. Suppose Canada...
Production of TVs are relatively capital intensive, and tennis racquets are relatively labor intensive. Suppose Canada has $20 billion of capital and 30 million workers and Mexico has $15 billion of capital and 10 million workers. According to the Heckscher-Ohlin(-Samuelson) model: Canada will import TVs and import tennis racquets. Canada will export TVs and import tennis racquets. Canada will import TVs and export tennis racquets. Canada will export TVs and export tennis racquets.
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor...
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor intensive than automobile production. Chile has 200 units of capital and S0 units of labor and United States has 1500 units of capital and 275 units of labor. has more capital and is relatively capital abundant. will export wheat and d. In Chile, the production of e In United States, the price of automobiles Chilean workers should has more labor. is...
Consider the following information on factor endowments for the two countries of Spain and Germany. Answer...
Consider the following information on factor endowments for the two countries of Spain and Germany. Answer the questions following the table on the discussion board. Answer each question separately by the number. Factor Endowments Spain Germany Labor Force 30 million 15 million Capital Stock 200,000 machines 400,000 machines Which country is relatively labor abundant? Show how you know. Which country is relatively capital abundant? Show how you determine. Assuming that steel is relatively capital intensive production, which country has a...
11. According to the standard Heckscher-Ohlin model with two factors (capital and labor) and two goods,...
11. According to the standard Heckscher-Ohlin model with two factors (capital and labor) and two goods, the movement of Turkish migrants to Germany would decrease the amount of capital-intensive products produced in Germany. Discuss whether this is true or false, and explain why.
Consider two countries, Spain and Italy, where the only two factors of production are capital and...
Consider two countries, Spain and Italy, where the only two factors of production are capital and labor. Spain has 100 units of capital and 400 units of labor and Italy has 200 units of capital and 100 units of labor. Both countries produce two goods, cheese and suits. The labor share in total production costs is 75% for cheese but only 25% for suits. (2 points for each part) A. Which country is labor abundant? Explain. B. Which good is...
Assume two countries Argentina and Brazil that produce two goods, corn and wine. Assume that land...
Assume two countries Argentina and Brazil that produce two goods, corn and wine. Assume that land is specific to corn, capital is specific to wine, and labor is free to move between the two industries. Assume that Brazil has a comparative advantage in corn, and Argentina has a comparative in wine. Brazil and Argentina sign a free trade agreement, and we want to study the consequences of this trade agreement. a) Is it possible that real wages move in opposite...
Suppose Elmira is a small country that produces two goods, grain and novels, with two factors...
Suppose Elmira is a small country that produces two goods, grain and novels, with two factors of production, unskilled labor (L) and skilled labor (L). Both factors are completely mobile between the two sectors of production in the long run. In the medium run, skilled labo is specific to its sector. That is, it takes time to retrain and acquire new skills in order to move between the two sectors in the economy The production of grain is relatively intensive...
Production of TVs are relatively capital intensive, and tennis racquets are relatively labor intensive. Suppose Canada has $20 billion of capital and 30 million workers and Mexico has $15 billion of capital and 10 million workers. According to the Heckscher-Ohlin(-Samuelson) model: Canada will import TVs and import tennis racquets. Canada will export TVs and import tennis racquets. Canada will import TVs and export tennis racquets. Canada will export TVs and export tennis racquets.
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor intensive than automobile production. Chile has 200 units of capital and S0 units of labor and United States has 1500 units of capital and 275 units of labor. has more capital and is relatively capital abundant. will export wheat and d. In Chile, the production of e In United States, the price of automobiles Chilean workers should has more labor. is...
11. According to the standard Heckscher-Ohlin model with two factors (capital and labor) and two goods, the movement of Turkish migrants to Germany would decrease the amount of capital-intensive products produced in Germany. Discuss whether this is true or false, and explain why.
Suppose Elmira is a small country that produces two goods, grain and novels, with two factors of production, unskilled labor (L) and skilled labor (L). Both factors are completely mobile between the two sectors of production in the long run. In the medium run, skilled labo is specific to its sector. That is, it takes time to retrain and acquire new skills in order to move between the two sectors in the economy The production of grain is relatively intensive...
Most questions answered within 3 hours.
-
The tires of a car make 61 revolutions as the car reduces its
speed uniformly from...
asked 1 minute ago -
Peabody, Inc., sells fireworks. The company’s marketing director
developed the following cost of goods sold budget...
asked 5 minutes ago -
A signal transduction pathway includes the steps listed
below.
1. An inactive signal transduction molecule is...
asked 4 minutes ago -
1. The correlation coefficient determined for two variables has
a value of 0.89. Describe, in words,...
asked 10 minutes ago -
The following data relate to direct materials costs for
November:
Actual costs
4,700 pounds at $5.35...
asked 8 minutes ago -
Kyle, a 95.0 kg football player, leaps straight up into the air
(with no horizontal velocity)...
asked 32 minutes ago -
Which of the following is a measure of profitability?
A.
Quick (acid-test) ratio
B.
Net sales...
asked 35 minutes ago -
Find the total pressure exerted by 2 grams of ethane and 3 grams
of CO2 contained...
asked 36 minutes ago -
A fireman standing on a 5.2 m high ladder operates a water hose
with a round...
asked 32 minutes ago -
A cream formulation is studied for accelerated stability study.
Creaming was observed when formulation was tested...
asked 35 minutes ago -
A 1,150 lumen light bulb is placed 37 cm in front of a mirrored
wall, whose...
asked 46 minutes ago -
Given that z is a standard normal random variable, compute the
following probabilities (to 4 decimals)....
asked 52 minutes ago